New Products on a Short Leash
By George Anderson
It’s not enough for a new product to sell well anymore. It also needs to drive category growth if a retailer is going to give it dedicated shelf space, according to an article from KPMG’s Consumer Markets Insider.
According to Information Resources Inc. (IRI), new products contribute to approximately 70 percent of category growth while established products represent the balance.
Valerie Skala, vice president of analytic product management, Information Resources Inc. summarized retailers’ expectations for new items. “If a new product is not driving overall category growth, forget about it.”
In a best case scenario, a new product will create an entirely new category, as in the case of teeth whiteners. Procter & Gamble spokesperson, Robert Killins said, “People were going to the dentist to get their teeth cleaned and so we created a less expensive, but just as effective product, creating a new product category.”
Moderator’s Comment: What are the keys to making new
product rollouts successful at retail?
Getting product on the shelf is always a good start. [George
Anderson – Moderator]